What do airports, apartment complexes, pig farms and prisons have in common? Oddly enough, they all have environmental liabilities and are representative of the variety of customers the Industrial and Commercial Facilities business unit serves regularly. The unit specializes in the environmental risks faced by nonenvironmental facilities and businesses, for which pollution liability insurance has increasingly become a necessity in today's environmentally conscious and litigious society.

While the exposures faced by industrial and commercial facilities vary significantly, they do have one factor in common the potential for catastrophic loss. The following case studies illustrate the variety of environmental exposures faced by non-environmental facilities and the possibility of significant financial loss from unprotected pollution liabilities.

Chemical Distributor

While a utility worker was using denatured alcohol to clean tools, a co-worker carelessly tossed a cigarette butt which ignited the alcohol. The utility worker sustained extensive burns. Despite the facts that the alcohol carried flammable warnings on the label and the claimant was not using the product for its intended purpose, a court found the chemical distributor and chemical manufacturer liable. Damages exceeded $650,000.

Real Estate Developer

A real estate development firm acquired property historically used for farming on which they planned to build a mall. The firm hired a consultant to conduct a Phase I Environmental Assessment. The property was determined to be clean. However, when excavation for the mall began, 100 drums of buried pesticides and herbicides were unearthed. The chemicals contaminated the soil and had to be removed at the firm's expense. Remediation and drum-disposal costs exceeded $750,000 and resulted in a two week construction delay.

Product Manufacturer

When a manufacturing facility's smokestack scrubber system failed, a cloud of chemicals was emitted from the stack. The cloud blew off-site, damaging the finish on automobiles and discoloring the siding on houses. As a result, claims were filed against the facility for property damage. In turn, the facility sued the manufacturer of the failed smokestack scrubber to recover claims costs which exceeded $200,000.

Coverage You Can Count On

Clearly, our customers have a wide range of exposures and liabilities. We responded to these risks by creating specialized programs and services exclusively for industrial and commercial facilities.

In conjunction with our risk control division, XL Environmental also offers loss control programs specially designed to meet the needs of industrial and commercial facilities. These loss control programs feature services such as safety and health training and spill plan design.

From airports to real estate developers, XL Environmental protects nonenvironmental businesses with specialized products and services to guard against environmental losses.